HYPE Faces 28.5% Drop as Key Resistance Fails and Support Tested

HyperLiquid’s native token, HYPE, has entered a correction phase following the failed breakout above a key resistance level of $42.24. The token briefly reclaimed the level and reached a new all-time high before failing to hold the position, triggering a sell-off and shifting market focus toward lower support zones. The breakdown indicates weakening structure, with price now approaching the point of control and facing potential further declines toward the value area low near $30 [1].

Technical analysis highlights several critical points in this recent price development. The failed auction at $42.24 marks a significant reversal in momentum, confirming a bearish deviation that increases the likelihood of deeper retracements. Price is currently testing the point of control, an important support level that has not yet been validated during this correction. Should HYPE hold this level on a daily closing basis, the move could be viewed as a healthy correction within a broader uptrend. However, a failure to do so would increase the probability of a decline toward $30, a level that contains significant liquidity and could serve as a high-probability bounce location [1].

Further downside toward $26.53 is also possible should the $30 level fail. This would define a larger range between the current resistance and support levels, creating a rotational structure that could persist in the absence of strong directional volume. From a structural standpoint, the bullish trend remains intact as long as the value area low is respected on a closing basis. A breach of this level would signal a breakdown in the current market structure and could lead to deeper consolidation or an outright trend reversal [1].

Volume analysis adds to the bearish outlook. Following the all-time high, volume has declined with no clear bullish influx, indicating a lack of demand at higher levels. This weak volume profile increases the risk of continued downward movement until buyers step in with conviction. Traders are advised to closely monitor volume during any potential recovery to determine the strength of the buying interest [1].

In addition to the price developments, HyperLiquid has faced operational challenges. On July 30, 2025, the platform experienced a 30-minute API outage around 16:00 French time, disrupting user access. While not directly linked to the price movement of HYPE, the incident may raise concerns about the platform’s reliability and could affect investor sentiment toward the broader ecosystem [2].

Investors are advised to remain cautious as the market navigates this correction phase. The coming price action will likely depend on how HYPE holds the key support levels and whether volume picks up to confirm any potential reversal. For now, the token appears to be in a rotational structure, with traders likely reassessing short-term positions amid the uncertainty [1].

Source:

[1] HyperLiquid price analysis: HYPE enters correction after ... (https://crypto.news/hyperliquid-price-analysis-hype-enters-correction-after-failed-breakout-30-in-sight/)

[2] RSS Crypto - Cryptocurrency News feed aggregator (https://rsscrypto.com/)